5 Best Investments for Beginners

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Ecommerce giant Amazon.com, Inc. (NASDAQ:AMZN) ranks 2nd in our list of the best investments for beginners in the stock market. Recently, reports emerged that the FTC was preparing to file a lawsuit against Amazon.com, Inc. (NASDAQ:AMZN). But Wedbush’s analyst Scott Devitt sees that as a potential buying opportunity.

“There is evidence that U.S. retail continues to function as a highly competitive market both online and offline despite Amazon’s success. We would be buyers of Amazon shares on any weakness related to the headlines of an FTC case,” Devitt said.

A total of 278 hedge funds tracked by Insider Monkey had stakes in Amazon.com, Inc. (NASDAQ:AMZN), according to Insider Monkey’s proprietary database of hedge funds.

Diamond Hill Large Cap Strategy made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2023 investor letter:

“Among our top contributors were insurance company American International Group (AIG), auto retailer CarMax and global online retailer Amazon.com, Inc. (NASDAQ:AMZN).

Amazon’s management team has been working to improve retail profitability, and Q1 results showed progress. In the case of Amazon’s web services (AWS), the market has shifted its focus from where growth will bottom in the near term to how AI can help accelerate the adoption of public cloud services in the future. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”